In the beginning, a Nazi naval officer and a group of German sailors on board the battleship Tirpitz have been tricked into thinking B.J. Blazkowitz is the general after donning the general's hat, boots, and jacket. After seeing blood dripping from the edge of the jacket, the sailors realize that there's a spy on board who has killed the actual general. As Blazkowitz fights the men on board he's forced to surrender by an officer, who orders him to show him the glowing object hidden in the jacket.

He finds a mysterious medallion in the general's jacket and the officer orders the men to kill him, but he accidentally pushed the trigger which projects a shield over him that reflects the bullets back at the men, creating a cosmic energy wave that melts the men and officer. Hijacking a plane from a German airman, he escapes off the exploding Tirpitz and returns back to the OSA headquarters. During a meeting at OSA headquarters, he learns that the medallion needs crystals called Nachtsonne (found only in Isenstadt) to make use of its full power. The Nazis have begun digging for crystals, led by a Nazi general named Victor Zetta. Blazkowicz is sent to Isenstadt, but his cover is blown by an unknown informant. He then meets up with agents from the Kreisau Circle, and with them, makes it to Isenstadt.